"We have got the clearance to restart the talks. Accordingly, a Russian team is here and cost negotiations began yesterday," a high-level defense source told the newspaper on Wednesday.

Russia made a new offer, under which India would have to pay $3.7 billion, instead of $6 billion, for the technological know-how and three prototypes of PAK-FA fighters, The Times of India said.

According to the newspaper, the Russian delegation will also hold negotiations on the production of 200 Kamov 226T helicopters. The contract to produce the helicopters for India's Air Force was signed during Indian Prime Minister Narendra Modi's December 2015 visit to Moscow.

The FGFA project came about following a Russian-Indian cooperation agreement signed on October 18, 2007. The estimated total cost of the project in 2008 amounted to $11 billion, which was to be covered through equal investment by India’s Hindustan Aeronautics Ltd and Russia’s Sukhoi Company.